Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 Index called to open flat at 7295, still holding on to February’s uptrend and the key 7300 mark. This keeps Bulls optimistic of a bounce and rally back to January’s 7365 record highs, while Bears focus on RSI negative divergence that could be the precursor for a breakdown. Bulls will be looking for a break above 7300 while Bears want to see another test of 7290. Watch levels: Bullish 7305, Bearish 7285.

Calls for a flat open come after a mixed day in Asia, echoing Europe’s close yesterday with no lead from the US on account of the President's day holiday. Politics still to the fore as polls suggest Le Pen closing the gap on rivals just two months before the first round of the French election. Note Greece has also missed yet another bailout deadline as creditors maintain demands on reforms.

Japan’s Nikkei is outperforming thanks to a stronger USD producing helpful Yen weakness, and despite mixed manufacturing/industrial data.  Australia’s ASX is in the red, underperforming as the stronger Greenback impedes the key commodity space, bar Iron Ore which is pushing fresh 2yr highs and oil prices challenging 2017 falling highs resistance.

UK Index sentiment this morning likely hampered by disappointing HSBC results (profits -62%, smaller buyback) sending the shares 4% lower in Hong Kong. Remember the stock makes up 7.1% of the index which means it has a big influence. On the flipside, in the Mining space, note Anglo American profits beating expectations and BHP Billiton back to profitability thanks to higher commodity prices and operational improvements allowing it boost the dividend.

US equity markets were closed yesterday for President’s day, however futures are pointing to a marginally higher opening on Wall Street later today for the Dow Jones, S&P 500 and Nasdaq, despite the former two bourses falling back from yesterday’s early morning highs.

Crude Oil is currently challenging 2017 falling highs resistance, having rallied yesterday on account of a flat US dollar and weaker trading volumes with US traders enjoying a long weekend. Investors are betting on hopes that the supply in the market has been rebalanced thanks to OPEC’s coordinated production cuts with non-members, while the increase in US production will not be significant enough to fill the gap.

Having fallen overnight in reaction to the stronger dollar, Gold is bouncing from a duo of support at $1233, however bearish sentiment could lead to a breakdown of support as no less than three US Federal Reserve speakers are scheduled today. With their Boss Janet Yellen having produced perhaps her most hawkish speech in recent memory last week, will the regional Fed heads concur?

In focus today will be day 2 of the second reading of the Brexit Bill debate in the House of Lords before its heads to the committee stage and an eventual vote, with or without amendments.

Speakers today include ECB vice president Constâncio who will participate at the ECOFIN meeting in Brussels and BoE Governor Carney who testifies before UK Parliament's Treasury Committee on the central bank's latest inflation report.

In the afternoon what Fed members Kashkari (voter, dove, “Fireside chat on the economy”), Harker (voter, hawk, “Economic outlook”) and Williams (non-voter, centrist, "Getting to Know the Fed,") have to say will be of particular interest in light of hawkish Fed comment of late and supportive data.

Data-wise, it’s all about PMI Manuf & Services with the Eurozone seen flat in Feb (France down for both; Germany Manuf down, Services up) while the US gains a little ground for both segments.

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UK Company Headlines: (Source: Reuters/DJ Newswires)

• Crude Oil prices rise as investors bet big on oil strength
• John Wood Group says FY adj EPS 64.1 cents
• Anglo American says FY profit attributable to shareholders $1.6bn
• Mediclinic says Switzerland, S.Africa performing in line
• Wolseley to merge Swiss plumbing, heating unit with Walter Meier AG
• IHG appoints Malina Ngai as non – exec director
• Hotelier IHG posts higher profit, to return $400m to investors
• Anglo American reports 25% rise in core earnings, to resume dividends
• Capita writes down value of historic contracts, says trading in line
• Balfour Beatty to sell Middle East joint ventures
• Kerry Group reports FY earnings per share up 7.1%
• Rosneft becomes first oil major to pre – finance Kurdish crude
• UK builder Galliford Try H1 profits rise, sees more growth ahead
• HSBC's 2016 profit slumps 62% on writedowns, HK shares slide -3.5%
• HSBC says $3.2bn private banking impairment won't impact capital ratio
• Gold drops as investors await hints on U.S. rate hikes
• BHP Billiton posts half – year net profit of $3.20bn from year – ago loss of $5.67bn
• BHP Billiton Launches Bond Repurchase Plan of up to $2.5bn, boosts interim dividend on commodities surge
• TransferWise launches international money transfers via Facebook
• London copper slips on dollar, supply threats underpin